Genco Shipping & Trading is aiming complete a major disposal of veteran tonnage by the end of this year.
New York-listed Genco had previously earmarked 15 older bulkers for sale. After initial progress 12 of that tally remain with the company.
Genco will begin the divestment of those dozen ships in September and October, when the market is firmer and there are more buyers, chief executive John Wobensmith said during a conference call.
The US company saved significantly by selling the three older vessels, Wobensmith said.
He gave the example of the 72,500-dwt panamax Genco Surprise (built 1998), which would cost $1.5m to dry dock and another $500,000 to $750,000 for ballast water treatment.
TradeWinds reported earlier this week that the ship had been sold but Genco had not previously commented on the transaction.
When quizzed whether Genco will install scrubbers to meet the IMO 2020 sulphur cap, Wobensmith said that decision would be taken in the middle of the fourth quarter, adding that it would cost an average of $3m per vessel to install the equipment.
Additionally, Genco bought six new fuel-efficient vessels for nearly $240m this summer, executing its ongoing fleet renewal strategy.
The new tonnage reduced the average age of the Genco fleet by more than a year, and increased the overall carrying capacity to 5.4 million dwt.
The vessels are efficient and geared towards changing market needs, with a capesize consuming seven to nine tonnes less fuel while going 12 to 12.5 knots, Wobensmith said.
Genco’s fleet currently comprises 63 bulkers ships.
